Leak lands Sharon in election row

A heated debate about press freedom gripped Israel after a state prosecutor was suspended for slipping a reporter a document that outlined corruption allegations against Prime Minister Ariel Sharon.

Liora Glatt-Berkovitch told investigators she had leaked investigative documents in the midst of Mr Sharon's campaign for re-election because she was frightened for her son, who is likely to be drafted into the army as the intifada rages with no end in sight, Israeli radio reported.

The document showed that the Prime Minister was under investigation for fraud and breach of trust for accepting a $US1.5 million ($2.5 million) campaign loan from a South African friend. Mr Sharon told investigators the money came from a mortgage on his ranch.

Israel's Ha'aretz newspaper broke the news earlier this month, and an infuriated Mr Sharon and his ruling Likud party slumped in opinion polls before rebounding. Immediately, Attorney-General Elyakim Rubinstein opened a controversial hunt for the source of the leak.

"Instead of urgently examining and investigating the matter of a politician's integrity, a vital issue before elections and not afterward, somebody decided that what was important was to examine who leaked," said Libi Mozel, a lawyer for Ha'aretz. ");document.write("

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The Attorney-General defended his investigation, telling reporters: "I am not a disciple of investigations into leaks, mainly because in the past they have not shown results.

"Two reasons led me to decide upon the investigation: the obstruction and damage caused to the (Sharon) investigation by the leak, and the suspicion, which unfortunately came true, that a source from the government made a political move in this sensitive period prior to the elections."

The probe into the leak came to a climax late on Tuesday, when Ha'aretz crime reporter Baruch Kra was interrogated, facing charges of obstruction of justice. The threat of charges was a new tactic in a nation where reporters enjoy some privilege to protect their sources. Critics called it a blow to press freedom.

It was "unprecedented and smells of pressure to reveal his sources", Press Council president Nitza Shapira Libai said.

"Inconceivable in a democracy," said Ha'aretz's managing editor, Yoel Esteron. "Sadly, this Attorney-General has disgraced his office."

In the end, the journalist said he refused to tell investigators who gave him the detailed letter written by Israeli investigators and addressed to the South African Government. After half an hour, he was released.

"I am as big a fan of freedom of the press as anyone," Mr Rubinstein told reporters, "but a judicial leak is a grave matter, and the investigation required we question Kra as well."

Mr Rubinstein later identified Ms Glatt-Berkovitch - who had been appointed by him - as the source of the leak, and said she was likely to be prosecuted.

In the final days before the January 28 election, more corruption allegations have emerged in a campaign already thick with scandal. Israeli investigators seized documents from Labour Party leader Amram Mitzna's office. Mr Mitzna, Mayor of the city of Haifa, is being investigated on suspicion of bribery for allegedly granting construction permits in exchange for discounted office space.

With the two top candidates under criminal investigation, Likud is still leading in the polls by a wide margin. A poll to be published overnight in Ha'aretz will show the ruling party projected to win about 30 parliament seats, 10 more than Labour is expected to win.